diff --git a/.infer/config.yaml b/.infer/config.yaml
index e57651b8..7e91c474 100644
--- a/.infer/config.yaml
+++ b/.infer/config.yaml
@@ -12,9 +12,6 @@ tools:
       - ls
       - pwd
       - echo
-      - cat
-      - head
-      - tail
       - grep
       - find
       - wc
@@ -27,7 +24,10 @@ tools:
       - ^kubectl get pods$
   safety:
     require_approval: true
+  exclude_paths:
+    - .infer/
+    - .infer/*
 compact:
   output_dir: .infer
 chat:
-  default_model: deepseek/deepseek-chat
+  default_model: ""
diff --git a/CLAUDE.md b/CLAUDE.md
index 6d5577c8..f5358ae4 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -152,6 +152,9 @@ tools:
       - "^kubectl get pods$"
   safety:
     require_approval: true  # Prompt user before executing any command
+  exclude_paths:  # Paths excluded from tool access for security
+    - ".infer/"     # Protect infer's own configuration directory
+    - ".infer/*"    # Protect all files in infer's configuration directory
 compact:
   output_dir: ".infer"  # Directory for compact command exports (default: project root/.infer)
 chat:
@@ -177,6 +180,10 @@ chat:
         - `enable`: Enable safety approval prompts
         - `disable`: Disable safety approval prompts
         - `status`: Show current safety approval status
+      - `exclude-path`: Manage excluded paths for security
+        - `list`: List all excluded paths
+        - `add <path>`: Add a path to the exclusion list
+        - `remove <path>`: Remove a path from the exclusion list
   - `version`: Version information
 
 ## Dependencies
@@ -245,6 +252,11 @@ infer config tools exec "git status"
 infer config tools safety enable
 infer config tools safety disable
 infer config tools safety status
+
+# Manage excluded paths for security
+infer config tools exclude-path list
+infer config tools exclude-path add ".github/"
+infer config tools exclude-path remove "test.txt"
 ```
 
 ## Code Style Guidelines
diff --git a/cmd/config.go b/cmd/config.go
index aa814b92..075d3a18 100644
--- a/cmd/config.go
+++ b/cmd/config.go
@@ -130,6 +130,35 @@ var configToolsSafetyStatusCmd = &cobra.Command{
 	RunE:  safetyStatus,
 }
 
+var configToolsExcludePathCmd = &cobra.Command{
+	Use:   "exclude-path",
+	Short: "Manage excluded paths",
+	Long:  `Manage paths that are excluded from tool access for security purposes.`,
+}
+
+var configToolsExcludePathListCmd = &cobra.Command{
+	Use:   "list",
+	Short: "List excluded paths",
+	Long:  `Display all paths that are excluded from tool access.`,
+	RunE:  listExcludedPaths,
+}
+
+var configToolsExcludePathAddCmd = &cobra.Command{
+	Use:   "add <path>",
+	Short: "Add a path to the exclusion list",
+	Long:  `Add a path to the exclusion list to prevent tools from accessing it.`,
+	Args:  cobra.ExactArgs(1),
+	RunE:  addExcludedPath,
+}
+
+var configToolsExcludePathRemoveCmd = &cobra.Command{
+	Use:   "remove <path>",
+	Short: "Remove a path from the exclusion list",
+	Long:  `Remove a path from the exclusion list to allow tools to access it again.`,
+	Args:  cobra.ExactArgs(1),
+	RunE:  removeExcludedPath,
+}
+
 func setDefaultModel(modelName string) error {
 	cfg, err := config.LoadConfig("")
 	if err != nil {
@@ -158,11 +187,16 @@ func init() {
 	configToolsCmd.AddCommand(configToolsValidateCmd)
 	configToolsCmd.AddCommand(configToolsExecCmd)
 	configToolsCmd.AddCommand(configToolsSafetyCmd)
+	configToolsCmd.AddCommand(configToolsExcludePathCmd)
 
 	configToolsSafetyCmd.AddCommand(configToolsSafetyEnableCmd)
 	configToolsSafetyCmd.AddCommand(configToolsSafetyDisableCmd)
 	configToolsSafetyCmd.AddCommand(configToolsSafetyStatusCmd)
 
+	configToolsExcludePathCmd.AddCommand(configToolsExcludePathListCmd)
+	configToolsExcludePathCmd.AddCommand(configToolsExcludePathAddCmd)
+	configToolsExcludePathCmd.AddCommand(configToolsExcludePathRemoveCmd)
+
 	configInitCmd.Flags().Bool("overwrite", false, "Overwrite existing configuration file")
 	configToolsListCmd.Flags().StringP("format", "f", "text", "Output format (text, json)")
 	configToolsExecCmd.Flags().StringP("format", "f", "text", "Output format (text, json)")
@@ -208,9 +242,10 @@ func listTools(cmd *cobra.Command, args []string) error {
 
 	if format == "json" {
 		data := map[string]interface{}{
-			"enabled":  cfg.Tools.Enabled,
-			"commands": cfg.Tools.Whitelist.Commands,
-			"patterns": cfg.Tools.Whitelist.Patterns,
+			"enabled":       cfg.Tools.Enabled,
+			"commands":      cfg.Tools.Whitelist.Commands,
+			"patterns":      cfg.Tools.Whitelist.Patterns,
+			"exclude_paths": cfg.Tools.ExcludePaths,
 			"safety": map[string]bool{
 				"require_approval": cfg.Tools.Safety.RequireApproval,
 			},
@@ -240,6 +275,15 @@ func listTools(cmd *cobra.Command, args []string) error {
 		fmt.Printf("  • %s\n", pattern)
 	}
 
+	fmt.Printf("\nExcluded Paths (%d):\n", len(cfg.Tools.ExcludePaths))
+	if len(cfg.Tools.ExcludePaths) == 0 {
+		fmt.Printf("  • None\n")
+	} else {
+		for _, path := range cfg.Tools.ExcludePaths {
+			fmt.Printf("  • %s\n", path)
+		}
+	}
+
 	fmt.Printf("\nSafety Settings:\n")
 	if cfg.Tools.Safety.RequireApproval {
 		fmt.Printf("  • Approval required: %s\n", ui.FormatSuccess("Enabled"))
@@ -381,3 +425,69 @@ func getConfigPath() string {
 	}
 	return configPath
 }
+
+func listExcludedPaths(cmd *cobra.Command, args []string) error {
+	cfg, err := config.LoadConfig("")
+	if err != nil {
+		return fmt.Errorf("failed to load config: %w", err)
+	}
+
+	if len(cfg.Tools.ExcludePaths) == 0 {
+		fmt.Println("No paths are currently excluded.")
+		return nil
+	}
+
+	fmt.Printf("Excluded Paths (%d):\n", len(cfg.Tools.ExcludePaths))
+	for _, path := range cfg.Tools.ExcludePaths {
+		fmt.Printf("  • %s\n", path)
+	}
+
+	return nil
+}
+
+func addExcludedPath(cmd *cobra.Command, args []string) error {
+	pathToAdd := args[0]
+
+	_, err := loadAndUpdateConfig(func(c *config.Config) {
+		for _, existingPath := range c.Tools.ExcludePaths {
+			if existingPath == pathToAdd {
+				return
+			}
+		}
+		c.Tools.ExcludePaths = append(c.Tools.ExcludePaths, pathToAdd)
+	})
+	if err != nil {
+		return err
+	}
+
+	fmt.Printf("%s\n", ui.FormatSuccess(fmt.Sprintf("Added '%s' to excluded paths", pathToAdd)))
+	fmt.Printf("Tools will no longer be able to access this path\n")
+	return nil
+}
+
+func removeExcludedPath(cmd *cobra.Command, args []string) error {
+	pathToRemove := args[0]
+	var found bool
+
+	_, err := loadAndUpdateConfig(func(c *config.Config) {
+		for i, existingPath := range c.Tools.ExcludePaths {
+			if existingPath == pathToRemove {
+				c.Tools.ExcludePaths = append(c.Tools.ExcludePaths[:i], c.Tools.ExcludePaths[i+1:]...)
+				found = true
+				return
+			}
+		}
+	})
+	if err != nil {
+		return err
+	}
+
+	if !found {
+		fmt.Printf("%s\n", ui.FormatWarning(fmt.Sprintf("Path '%s' was not in the excluded paths list", pathToRemove)))
+		return nil
+	}
+
+	fmt.Printf("%s\n", ui.FormatSuccess(fmt.Sprintf("Removed '%s' from excluded paths", pathToRemove)))
+	fmt.Printf("Tools can now access this path again\n")
+	return nil
+}
diff --git a/config/config.go b/config/config.go
index 7bf5db19..accf28f3 100644
--- a/config/config.go
+++ b/config/config.go
@@ -34,9 +34,10 @@ type OutputConfig struct {
 
 // ToolsConfig contains tool execution settings
 type ToolsConfig struct {
-	Enabled   bool                `yaml:"enabled"`
-	Whitelist ToolWhitelistConfig `yaml:"whitelist"`
-	Safety    SafetyConfig        `yaml:"safety"`
+	Enabled      bool                `yaml:"enabled"`
+	Whitelist    ToolWhitelistConfig `yaml:"whitelist"`
+	Safety       SafetyConfig        `yaml:"safety"`
+	ExcludePaths []string            `yaml:"exclude_paths"`
 }
 
 // ToolWhitelistConfig contains whitelisted commands and patterns
@@ -76,7 +77,7 @@ func DefaultConfig() *Config {
 			Enabled: true,
 			Whitelist: ToolWhitelistConfig{
 				Commands: []string{
-					"ls", "pwd", "echo", "cat", "head", "tail",
+					"ls", "pwd", "echo",
 					"grep", "find", "wc", "sort", "uniq",
 				},
 				Patterns: []string{
@@ -89,6 +90,10 @@ func DefaultConfig() *Config {
 			Safety: SafetyConfig{
 				RequireApproval: true,
 			},
+			ExcludePaths: []string{
+				".infer/",
+				".infer/*",
+			},
 		},
 		Compact: CompactConfig{
 			OutputDir: ".infer",
diff --git a/internal/container/container.go b/internal/container/container.go
index 371d8c15..0aabd112 100644
--- a/internal/container/container.go
+++ b/internal/container/container.go
@@ -55,7 +55,7 @@ func (c *ServiceContainer) initializeDomainServices() {
 		c.config.Gateway.APIKey,
 	)
 
-	c.fileService = services.NewLocalFileService()
+	c.fileService = services.NewLocalFileService(c.config)
 
 	if c.config.Tools.Enabled {
 		c.toolService = services.NewLLMToolService(c.config, c.fileService)
diff --git a/internal/services/file.go b/internal/services/file.go
index 67d0843b..c223095d 100644
--- a/internal/services/file.go
+++ b/internal/services/file.go
@@ -9,6 +9,7 @@ import (
 	"sort"
 	"strings"
 
+	"github.com/inference-gateway/cli/config"
 	"github.com/inference-gateway/cli/internal/domain"
 )
 
@@ -18,11 +19,13 @@ type LocalFileService struct {
 	excludeExts map[string]bool
 	maxFileSize int64
 	maxDepth    int
+	config      *config.Config
 }
 
 // NewLocalFileService creates a new local file service
-func NewLocalFileService() *LocalFileService {
+func NewLocalFileService(cfg *config.Config) *LocalFileService {
 	return &LocalFileService{
+		config: cfg,
 		excludeDirs: map[string]bool{
 			".git":         true,
 			".github":      true,
@@ -207,6 +210,10 @@ func (s *LocalFileService) ValidateFile(path string) error {
 		return fmt.Errorf("file path cannot be empty")
 	}
 
+	if s.isPathExcluded(path) {
+		return fmt.Errorf("file is excluded: %s", path)
+	}
+
 	absPath, err := filepath.Abs(path)
 	if err != nil {
 		return fmt.Errorf("failed to resolve file path: %w", err)
@@ -237,6 +244,46 @@ func (s *LocalFileService) ValidateFile(path string) error {
 	return nil
 }
 
+// isPathExcluded checks if a file path should be excluded based on configuration
+func (s *LocalFileService) isPathExcluded(path string) bool {
+	if s.config == nil {
+		return false
+	}
+
+	cleanPath := filepath.Clean(path)
+
+	normalizedPath := filepath.ToSlash(cleanPath)
+
+	for _, excludePattern := range s.config.Tools.ExcludePaths {
+		cleanPattern := filepath.Clean(excludePattern)
+		normalizedPattern := filepath.ToSlash(cleanPattern)
+
+		if normalizedPath == normalizedPattern {
+			return true
+		}
+
+		if strings.HasSuffix(normalizedPattern, "/*") {
+			dirPattern := strings.TrimSuffix(normalizedPattern, "/*")
+			if strings.HasPrefix(normalizedPath, dirPattern+"/") || normalizedPath == dirPattern {
+				return true
+			}
+		}
+
+		if strings.HasSuffix(normalizedPattern, "/") {
+			dirPattern := strings.TrimSuffix(normalizedPattern, "/")
+			if strings.HasPrefix(normalizedPath, dirPattern+"/") || normalizedPath == dirPattern {
+				return true
+			}
+		}
+
+		if strings.HasPrefix(normalizedPath, normalizedPattern) {
+			return true
+		}
+	}
+
+	return false
+}
+
 func (s *LocalFileService) GetFileInfo(path string) (domain.FileInfo, error) {
 	absPath, err := filepath.Abs(path)
 	if err != nil {
diff --git a/internal/services/tool.go b/internal/services/tool.go
index 29ae753f..4bf651ff 100644
--- a/internal/services/tool.go
+++ b/internal/services/tool.go
@@ -204,8 +204,7 @@ func (s *LLMToolService) executeRead(filePath string, startLine, endLine int) (*
 	}
 
 	if err != nil {
-		result.Error = err.Error()
-		return result, nil
+		return nil, err
 	}
 
 	result.Content = content
@@ -308,7 +307,7 @@ func (s *LLMToolService) executeReadTool(args map[string]interface{}) (string, e
 
 	result, err := s.executeRead(filePath, startLine, endLine)
 	if err != nil {
-		return "", fmt.Errorf("file read failed: %w", err)
+		return "", err
 	}
 
 	if format == "json" {